Trading carbon credit tokens on the blockchain

Laurens Swinkels

International Review of Economics & Finance, 2024, vol. 91, issue C, 720-733

Abstract: Innovative financial services may help to reduce global carbon emissions. We examine the activity in trading of voluntary carbon credits on a new blockchain-based exchange, which reduces the amount of intermediation in this market. Over the years 2021 and 2022, about 3.8 million tCO2e tokens have been tokenized on the carbon token exchange, of which about 2.8 million tCO2e tokens have been burned, leaving 1.0 million tCO2 tokens available for purchase on the exchange. Over these two years, the total secondary market trading turnover has been $ 21.2 million. Trading liquidity is limited to only a few types of carbon credit tokens. The prices of these most liquid tokens move in line with prices of similar carbon projects available for purchase elsewhere.

Keywords: Blockchain; Carbon credits; Cryptocurrency; Finance; Investing (search for similar items in EconPapers)
JEL-codes: G10 G11 P18 Q51 Q54 Q58 (search for similar items in EconPapers)
Date: 2024
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:reveco:v:91:y:2024:i:c:p:720-733

DOI: 10.1016/j.iref.2024.01.012

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